Lithium Ionic Secures Grid Power Connection Contract with Cemig for Sustainable Electrification of the Bandeira Lithium Project, Minas Gerais, Brazil
Lithium Ionic Secures Grid Power Connection Contract with Cemig for
Sustainable Electrification of the Bandeira Lithium Project, Minas Gerais, Brazil
TORONTO, ON, October 31, 2023 – Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE:
H3N) (“Lithium Ionic” or the “Company”) reports that its 100%-owned Brazilian subsidiary, MGLIT
Empreendimentos Ltda (“MGLIT”), has entered into an agreement (the “Cemig Agreement”) with
Cemig Distribuição S.A. ( “Cemig”) to facilitate the construct ion and electrification of essential
power infrastructure between Cemig's existing power grid and the future Bandeira lithium
operation (“Bandeira”), located approximately 3 kilometers away (see Figure 1). The agreement
aligns with the Company’s goal of fast -tracking Bandeira towards production and solidifies its
position as a near -term lithium producer in the region by securing low- cost, renewable
hydroelectric power to meet the long- term requirements of the project. Cemig is the la rgest
electricity distributor in Brazil, serving, through its network extensions, approximately 96% of the
State of Minas Gerais.
Lithium Ionic has commissioned an independent NI 43-101 compliant Feasibility Study (“FS”) for
Bandeira, which is expected to be completed in early 2024. The FS follows the completion of a
Preliminary Economic Assessment ( “PEA”) earlier this month , which supported a long-life and
low-cost spodumene concentrate mining project with a post-tax Net Present Value (“NPV”)8% of
US$1.6 billion (~C$2.2 billion) and an Internal Rate of Return (“IRR”) of 121% (see press release
dated October 19, 2023).
Commenting on this development, Blake Hylands, P.Geo, CEO of Lithium Ionic, stated, “Securing
a connection to the region’s sustainable hydroelectric power infrastructure marks a significant de-
risking milestone on our path to becoming Brazil's next prominent lithium producer and reaffirms
our commitment to delivering value to our shareholders by rapidly advancing this project. With a
reliable source of sustainable and renewable electricity, the Bandeira project is poised to benefit
from cost-efficient power and a reduced carbon footprint, aligning with our corporate and ESG
objectives. We look forward to collaborating with Cemig on this important project.”
Details related to the Cemig Agreement include:
The electrical transmission infrastructure will include 3 kilometres of new transmission
lines, as well as a new substation adjacent to the future Bandeira mine.
MGLIT will directly undertake the construction of the electric connection systems, including
negotiations with contractors and suppliers, as well as the purchase of materials and
services, in accordance with Cemig's pre-approved list.
MGLIT and Cemig will jointly manage environmental licensing and land management.
The total project cost is expected to be approximately BRL$17million (approx. CAD$4.65
million). Following the completion of the project, the Company is eligible for reimbursement
of up to BRL$2.98 million (approx. CAD$816,000), subject to certain requirements.
The construction of the new electrical infrastructure is scheduled to be completed by Q4
2025, with electrification scheduled for the same period (subject to specific requirements).
Following the construction and a technical inspection by Cemig, the transmission lines
and substation will be transferred to Cemig. The operation and maintenance of electrical
infrastructure downstream of the new substation will be MGLIT’s responsibility.
Figure 1. Bandeira Project Location, Existing Substation and Transmission Lines, and
New Electrical Infrastructure Layout Connecting Bandeira to Existing Power Grid
About Lithium Ionic Corp.
Lithium Ionic is a Canadian mining company exploring and developing its lithium properties in
Brazil. Its flagship Itinga and Salinas projects cover 14,182 hectares in the northeastern part of
Minas Gerais state, a mining-friendly jurisdiction that is quickly emerging as a world-class hard-
rock lithium district. The Itinga Project is situated in the same region as CBL’s Cachoeira lithium
mine, which has produced lithium for +30 years, as well as Sigma Lithium Corp.’s Grota do Cirilo
project, which hosts the largest hard-rock lithium deposit in the Americas.
Qualified Persons
The technical information in this news release has been prepared by Carlos Costa, Vice President
Exploration of Lithium Ionic and Blake Hylands, CEO and director of Lithium Ionic, and both are
“qualified persons” as defined in NI 43-101.
Investor and Media Inquiries:
+1 647.316.2500
Cautionary Note Regarding Forward-Looking Statements
This press release contains statements that constitute “ forward-statements.” Such forward
looking statements involve known and unknown risks, uncertainties and other factors that may
cause the Company’s actual results, performance or achievements, or developments to differ
materially from the anticipated results, performance or ac hievements expressed or implied by
such forward-looking statements. Although the Company believes, in light of the experience of its
officers and directors, current conditions and expected future developments and other factors that
have been considered appropriate that the expectations reflected in this forward -looking
information are reasonable, undue reliance should not be placed on them because the Company
can give no assurance t hat they will prove to be correct. When used in this press release, the
words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or
“should” and the negative of these words or such variations thereon or comparable terminology
are intended to identify forward- looking statements and information. The forward -looking
statements and information in this press release include information relating to the economic
viability of Bandeira, the development of Bandeira, the ability to complete the FS and timing
thereof, the Company’s exploration program and other mining projects and prospects thereof, the
Company’s ability to complete a feasibility study, the Company’s ability to complete an
environmental impact assessment and obtain the requisite permitting and approvals and the
Company’s future plans . Such statements and information reflect the current view of the
Company. Risks and uncertainties that may cause actual results to differ materially from those
contemplated in those forward- looking statements and information. By their nature, forward-
looking statements involve known and unknown risks, uncertainties and other factors which may
cause our actual results, performance or achievements, or other future events, to be materially
different from any future results, performance or achievements expressed or implied by such
forward-looking statements. The forward- looking information contained in this news release
represents the expectations of the Company as of the date of this news release and, accordingly,
is subject to change after such date. Readers should not place undue importance on forward-
looking information and should not rely upon this information as of any other date. The Company
undertakes no obligation to update these forward- looking statements in the event that
management’s beliefs, estimates or opinions, or other factors, should change.
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policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press
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